Critical Analysis: Blaize (NASDAQ:BZAI) vs. Peraso (NASDAQ:PRSO)

Blaize (NASDAQ:BZAI) and Peraso (NASDAQ:PRSO) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Valuation & Earnings

This table compares Blaize and Peraso”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blaize	$38.63 million	0.73	-$206.90 million	($0.68)	-0.29
Peraso	$8.37 million	0.72	-$4.75 million	($0.68)	-0.58

Peraso has lower revenue, but higher earnings than Blaize. Peraso is trading at a lower price-to-earnings ratio than Blaize, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Blaize and Peraso, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blaize	1	4	2	0	2.14
Peraso	1	0	2	0	2.33

Blaize presently has a consensus price target of $1.98, indicating a potential upside of 909.71%. Peraso has a consensus price target of $3.08, indicating a potential upside of 677.05%. Given Blaize’s higher probable upside, analysts clearly believe Blaize is more favorable than Peraso.

Volatility & Risk

Blaize has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, Peraso has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Profitability

This table compares Blaize and Peraso’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blaize	-160.85%	-306.51%	-106.16%
Peraso	-85.63%	-223.38%	-153.27%

Institutional & Insider Ownership

97.1% of Blaize shares are owned by institutional investors. Comparatively, 77.6% of Peraso shares are owned by institutional investors. 17.4% of Blaize shares are owned by company insiders. Comparatively, 1.7% of Peraso shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Blaize beats Peraso on 7 of the 12 factors compared between the two stocks.

About Blaize

Blaize® has created a transformative new compute solution that unites silicon and software to optimize AI from the edge to the core. We’re partnering with customers to transform their products so they can deliver better experiences and better lives.

About Peraso

Peraso Inc., a fabless semiconductor company, develops, markets, and sells semiconductor devices and modules. The company's products include millimeter wavelength (mmWave) ICs, including baseband IC, various mmWave radio frequency, integrated circuits, as well as associated antenna technology; and mmWave antenna modules. It also provides accelerator engine products, comprising bandwidth engine for high-performance applications where throughput is critical; and quad partition rate, which allows for parallel accesses to multiple partitions of the memory simultaneously. Its mmWave products are used for various applications, such as multi-gigabit point-to-point (PtMP) wireless links; and fixed wireless access in the 5G operating bands, as well as consumer applications, such as wireless video streaming, and untethered augmented reality and virtual reality. The company also licenses intellectual property, as well as offers non-recurring engineering services. It markets its products through direct sales personnel, as well as sells representatives and distributors. The company was formerly knowns as MoSys, Inc. and changed its name to Peraso Inc. in December 2021. Peraso Inc. was incorporated in 1991 and is based in San Jose, California.